Blow to motorists as court upholds Sh7 fuel levy hike
Case filed by Haki Yetu Organisation against road maintenance levy was dismissed...
✨ Key Highlights
The High Court has upheld the Sh7 fuel levy hike, dismissing a petition that sought to compel the government to refund motorists for the increased road maintenance charge. The court ruled that the government met constitutional standards for public participation before implementing the increase in July 2024.
- The levy increased from Sh18 to Sh25 per litre of petrol and diesel under the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024.
- The case was filed by Haki Yetu Organisation against the Cabinet Secretary for Roads and Transport, the Kenya Roads Board, the Energy and Petroleum Regulatory Authority, and the Attorney-General.
- The Kenya Roads Board cited a funding deficit of Sh63 billion against an estimated annual requirement of Sh157 billion for road maintenance, justifying the increase.
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Court Upholds Sh7 Fuel Levy; Govt Blocks Carbon Credits; Bankers Urge CBK to Hold Rate at 9pc - February 2026
The High Court upheld the Sh7 fuel levy hike, dismissing a petition that sought a refund for motorists for the increased road maintenance charge implemented in July 2024. The court ruled the government met constitutional standards for public participation. Separately, the Kenyan government denied Koko Networks approval to sell carbon credits internationally due to concerns over potential monopolization of the market. This decision hindered Koko's ability to subsidize its bioethanol cooking fuel, leading to its exit. In the financial sector, the Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the Monetary Policy Committee (MPC) meeting. The KBA believes holding the rate will allow for the full transmission of previous cuts.
